Last Friday, I gave a presentation to a group of healthcare professionals. From medical assistants making $21 an hour, to doctors earning $500,000+ a year.
Here’s what they didn’t realize…
It doesn’t matter how much income you’re making, it’s about how you’re investing that income.
And investing can feel complicated…
Especially when you hear all this mumbo jumbo online about stocks, crypto, gold, Pokemon cards, real estate, etc.
In reality, you need to have a set order of priorities when it comes to investing.
Like what’s actually important for me to invest into TODAY, for my current situation.
Today you might need to be “investing” all your extra income into paying off your credit card debt. Or you might need to be “investing” into your emergency fund because you don’t have one. Or you need to “invest” all your extra money into your retirement because you have no nest egg.
BUT…
IN WHAT ORDER SHOULD I DO ALL THAT?
Well to answer that question, I thought about something I saw last Summer in Banff, Canada.
A cascade.
A cascade is a small waterfall, typically one of several that fall in stages down a steep rocky slope.
Basically, at each stage of the cascade, a pond needs to build up and eventually overflow so that the water can fall into the next pond.
And that’s where I decided to illustrate this for my presentation. To give people clarity on where their money should flow (ahh, see what I did there)
Hence, the financial cascade!
REPLY TO THIS EMAIL with the pond you’re currently on.
Of course, this isn’t a one-size fits-all-families method, but it can give you the basis for deciding on your investing priority.
And one more thing, if you are in the “emergency fund” ponds, please please please open up a High-Yield Savings Account (HYSA) to put that money inside.
It will make life so much better to separate your savings from your checking, and to be able to outpace inflation by earning 3.0-4.5% interest on your savings.
Like this is how much interest we’ve earned the past months just because we’re saving into an HYSA with CIT Bank.
It takes literally 5 minutes to open your own HYSA, and you can see some highly reviewed options here ⬇️
High-Yield Savings Accounts LINK
P.S. Did you reply to this email yet? I’d love to hear about your current financial stage and your next big goals!